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FY2021 ACFR
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1/19/2022 2:22:09 PM
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1/19/2022 2:20:03 PM
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1/19/2022
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CABARRUS COUNTY, NORTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS For the Fiscal Year Ended June 30, 2021 Total OPEB Liability The County’s total OPEB liability (TOL) of $43,301,564 was measured as of June 30, 2020 and was determined by an actuarial valuation as of June 30, 2020. Actuarial assumptions and other inputs. The County’s total OPEB liability in the June 30, 2020 actuarial valuation was determined using the following key actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified: Inflation 2.50% Real wage growth 1.00% Wage inflation 3.50% Salary increases, including wage inflation: General employees 3.50% ‐ 7.75% Firefighters 3.50% ‐ 7.75% Law enforcement officers 3.50% ‐ 7.35% Municipal Bond Index Rate: Prior measurement date 3.89% Measurement date 3.50% Healthcare cost trend rates: Pre‐Medicare 7.00% for 2020 decreasing to an ultimate rate of 4.50% by 2026 The discount rate used to measure the total OPEB liability was based on the June average of the Bond Buyer General Obligation 20‐year Municipal Bond Index published by The Bond Buyer. Mortality rates were based on the RP‐2014 mortality tables, with adjustments for LGERS experience and generational mortality improvements using Scale MP‐2020. The demographic actuarial assumptions for retirement, disability incidence, withdrawal, and salary increase used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period January 1, 2010 ‐ December 31, 2014, adopted by the LGERS Board. The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2020 valuation were based on a review of recent plan experience done concurrently with the June 30, 2020 valuation. 82
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